Government Response on Zero Hours Contracts for Agency Workers and an Update on Statutory Sick Pay

The Government has published its response to the consultation on how zero-hours contract measures will apply to agency workers. These changes form part of a broader set of amendments to the Employment Rights Bill, which will be considered at the House of Commons report stage. The Bill already includes key proposals for low and zero-hours workers, covering:

1. Guaranteed Hours – Eligible low and zero-hours workers will have the right to be offered guaranteed hours based on their actual hours worked over a specified reference period, expected to be 12 weeks.
2. Advance Notice of Shifts – Zero-hours and certain other workers must receive reasonable notice regarding their shifts and any changes to their schedules.
3. Compensation for Short-Notice Cancellations – Workers will be entitled to payment when shifts are cancelled, rescheduled, or cut short without sufficient notice.

To extend these protections to agency workers, the Government will introduce amendments to the Bill. The obligation to offer guaranteed hours will primarily fall on the end hirer, but secondary legislation may allow this responsibility to be placed on agencies or other entities in certain cases. The consultation response offers some initial insights:

1. Shift Notifications – Both the employment agency and the end hirer will be responsible for providing agency workers with reasonable notice of shifts. Tribunals will apportion liability on individual cases based on each party’s level of responsibility.
2. Short-Notice Cancellations – The employment agency must compensate workers for cancelled or shortened shifts, but it may recover costs from the hirer if their contractual arrangements allow.
3. Pre-Existing Contracts – For contracts signed before or within two months of the Bill’s passage, agencies will be permitted to recoup short-notice cancellation costs from the hirer if the hirer was responsible.
4. Regulatory Guidelines – The Secretary of State will have the authority to set regulations on how agency workers should be notified of shifts, cancellations, and changes.
5. Temporary Work Exemption – Employers will not be required to provide guaranteed hours if there is a legitimate temporary work need, such as seasonal demand.
6. Existing Agency Worker Regulations – The extended hire periods and transfer fees under The Conduct of Employment Agencies and Employment Businesses Regulations 2003 will remain unchanged.

Further details on implementation will be clarified through secondary legislation.

Another important update that has arisen from a consultation is that employees will either receive 80% of their average weekly earnings or the current rate of SSP, whichever is lower. This will be from day 1 of sickness. This change has removed the lower earnings limit and will affect employers significantly.

How To Contact Us:

To contact a member of our team, you can fill in our online enquiry form, email info@fraserdawbarns.com, or call your nearest office below. If you’d like to speak to a member of our team at one of our offices across Norfolk and Cambridgeshire, visit our offices page.

Wisbech: 01945 461456

March: 01354 602880

King’s Lynn: 01553 666600

Ely: 01353 383483
Downham Market: 01366 383171

This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek advice specific to your own circumstances. Fraser Dawbarns LLP is always happy to provide such advice.